Lessons from a Diner: Up Front Costs can Save You Money in your Engineering Practice (law note)

I happen to frequent a place in my hometown called Elmo’s Diner. A lot. As in, many of the servers know me by name. The food is good, yes. The selection is great. But there is a much more important reason that I go there over and over again– the service. Elmo’s seems to always have enough staff on hand, and they also work together to make sure your wait is never very long.

There are some other places in town that skimp on hiring waiters and waitresses. I guess they figure, the fewer they have working at any one time, the less money they have to pay out. Even though, of course, waiter minimum wage is much lower than regular minimum wage due to the tip factor. But some of these other places (who shall remain unnamed) really do seem to have the mindset that they will save money by not hiring enough staff for the number of customers.

Maybe that thinking works for them- in the short run. Do you know how much money I spend at Elmo’s Diner? Let’s just put it this way– I really should invest in direct deposit with them! These other places? I forget, and go to them every now and again, thinking, it can’t be all bad, right? And almost always, I remember why I do NOT go to them.

Now, back to construction. Many professional service firms are like the unmentionable restaurants above– they skimp on things that “cost money”. Notably, in two areas (1) professional liability insurance (errors & omissions coverage), and (2) getting legal assistance at the beginning of a project. These architects & engineers are making the same short-sighted mistake, thinking they are “saving money.” And yet, very often, in the long run they are costing themselves money– in contract disputes, legal wrangling at project end, or in paying out of pocket for large claims.

You should have E&O insurance if you are a working professional. Period. You should also have your contracts and proposals reviewed by a lawyer. Preferably, before any major new undertaking. The up front costs are small, but the impact can be huge. Just ask anyone at Elmo’s.

Your turn. Are there places that you frequent because of their superior service? Do the extra costs seem to pay for themselves over time? Share below.